With a long leasehold premises in Ilkeston, you are actually purchasing an entitlement to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than eighty years left. Anyone in Ilkeston with a lease approaching 81 years left should seriously think of extending it as soon as possible. When a lease has below 80 years remaining, under the current statute the freeholder can calculate and levy a larger premium, based on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold residencies in Ilkeston with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Lease extensions in Ilkeston can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Ilkeston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Connor was the the leasehold owner of a conversion flat in Ilkeston on the market with a lease of just over 72 years left. Connor informally contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Connor to invoke his statutory right. Connor obtained expert advice and secured an acceptable resolution without resorting to tribunal and readily saleable.
Mrs Ellen Fournier was assigned a lease of a purpose-built apartment in Ilkeston in February 2012. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Comparable homes in Ilkeston with an extended lease were valued around £225,800. The mid-range amount of ground rent was £60 collected annually. The lease came to a finish on 22 March 2085. Given that there were 60 years left we estimated the compensation to the landlord for the lease extension to be between £23,800 and £27,400 not including costs.
Mr and Mrs. F Clarke purchased a recently refurbished apartment in Ilkeston in July 1998. The dilemma was if we could estimate the premium could be for a 90 year lease extension. Comparative homes in Ilkeston with an extended lease were worth £210,000. The average amount of ground rent was £50 collected quarterly. The lease terminated in 2105. Taking into account 80 years remaining we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus fees.